Tesla Offers $1 Trillion Payday to Elon Musk if Ambitious Targets Met

Tesla Proposes $1 Trillion Pay Package for Elon Musk Amid Ambitious Targets The board of Tesla has proposed a staggering $1 trillion pay package for CEO Elon Musk if he achieves ambitious targets over the next decade, including boosting the company's value eightfold and selling millions of electric cars and AI robots. According to the proposal, Musk would not earn a salary or bonus but would instead be gradually awarded shares which would be worth $1 trillion if he achieves all the targets. The package is part of Tesla's long-term compensation plan, which aims to incentivize Musk to meet a series of "moonshot" goals that include selling 12 million more electric cars than the company has already sold, as well as selling a million artificial intelligence robots. The proposal has been met with skepticism from investors, who are being urged to vote in favor of the package despite concerns it may be too generous given Musk's already substantial wealth. According to Tesla's board, the pay package is designed to reward Musk for his vision and leadership in transforming the electric car industry. "Growth that may seem impossible today can become a reality through innovation and hard work," the board said in a statement. However, some investors have expressed concerns about the feasibility of the targets and the potential risks associated with such a large pay package. Tesla's proposal comes at a time when the company is facing increased competition from other electric car manufacturers, including established players like General Motors and Volkswagen. Despite this, Tesla has been making significant strides in recent years, with its market value increasing by over 500% since 2019. The pay package has also raised questions about Musk's already substantial wealth. According to Forbes, Musk is currently the world's richest person, with an estimated net worth of over $200 billion. "It's hard to see how this proposal can be justified given Elon Musk's existing wealth," said one investor, who wished to remain anonymous. Tesla's board has urged investors to vote in favor of the pay package at the company's upcoming annual meeting. However, it remains to be seen whether the proposal will pass, and what implications it may have for the company's future performance. In a statement, Tesla's board said: "We believe that this compensation plan is fair and reasonable, and we urge our shareholders to support it." The company has also emphasized that the pay package is designed to align Musk's interests with those of shareholders, and to incentivize him to continue driving growth and innovation at the company. The proposal has sparked a heated debate among investors and analysts, with some arguing that it is too generous given Musk's existing wealth, while others see it as a necessary incentive to drive growth and innovation. As the annual meeting approaches, one thing is clear: the fate of Tesla's pay package hangs in the balance. Background: Tesla's proposal comes at a time when the company is facing increased competition from other electric car manufacturers. According to a report by BloombergNEF, the global electric vehicle market is expected to reach 14 million units by 2025, up from just over 2 million in 2020. Despite this, Tesla remains one of the leading players in the industry, with a market value that has increased by over 500% since 2019. Context: The pay package proposal is part of a larger trend of increasing executive compensation packages in the tech industry. According to a report by Equilar, the average CEO compensation package in the S&P 500 index rose by 12% in 2020, with some CEOs earning over $100 million in total compensation. However, Tesla's proposal stands out for its sheer scale and ambition. Relevant Quotes: "Growth that may seem impossible today can become a reality through innovation and hard work," said Tesla's board. "It's hard to see how this proposal can be justified given Elon Musk's existing wealth," said one investor, who wished to remain anonymous. Current Status: The pay package proposal will be put to a vote at Tesla's upcoming annual meeting. The outcome is uncertain, with some investors expressing concerns about the feasibility of the targets and the potential risks associated with such a large pay package. This story was compiled from reports by BBC Business and BBC Business.